5 Resolutions for 2021 to Make Your Nonprofit Stronger
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by Kim Vaccari, Nonprofit Pro contributor
Nonprofits suffered this year. Starting in March when COVID-19 hit, it has been a nonstop game of survival, learning, pivoting and reinvention. Many strived and filled in gaps where the government failed and provided essential services to the most vulnerable. Many shuttered their doors awaiting the time when their missions became more relevant. And sadly, many closed, unable to weather the storm of loss of funding, loss of staff and lack of resources to continue their missions in the virtual world.
What has been made crystal clear is that the nonprofit sector played a critical role during the crisis and will continue to play a critical role in our recovery. So now is the time to take a breath and see what your nonprofit has learned from this year. How did you manage? How are you planning for the future when so many factors are uncertain? Do you see some signs of what the new normal will be?
After a year of being in crisis mode, take the time to be thoughtful about the coming year. Make the following New Year’s resolutions as we inch toward recovery. You will be stronger for it.
Resolution No. 1: Review and Strengthen Organizational Governance Practices
Review your by-laws to ensure that they sync with your practices. Virtual board meetings and voting may very well be around for a long time, so it is critical that your by-laws match your current practice. For example, do your by-laws allow for virtual meetings, email voting, etc.? Is your committee structure still relevant and serving the organization? Take the time to do a full review of the by-laws and amend and readopt if necessary. Also, be sure to check the nonprofit laws in your state to see what is permissible in terms of virtual meetings. Some prohibit it; some have allowed it for a period of time. What are the rules in effect, and are you compliant?
Examine your policies. Are your policies equitable? Did they work? Are they still relevant? Did you discover that you did not have adequate policies in place to deal with a crisis, working from home, governance, etc.? Review all of your organization’s policies through an equity lens. Make sure all the language is gender neutral and inclusive. Then rewrite them and readopt them.
Check for mission creep. If you have pivoted dramatically in terms of your mission and programs, make sure that the services you are providing do not fall outside of your Certificate of Incorporation.
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How Do You Reorganize A Nonprofit?
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3 Ways to Reorganize or Restructure Your Nonprofit
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If your nonprofit is trying to find ways to accomplish new goals or is struggling, it might be time to restructure. Restructuring and reorganization can take on different forms, but they usually involve an intentional desire to change direction. Choosing which method is best can be a challenge. There are three primary methods:
- “Internal” restructuring
- Bankruptcy: Chapter 11 reorganization
- Custodianship
Restructure is the term we use to denote an “internal” change in the way things are operated, like adding or subtracting a new program line. Reorganize is the term we use for a more formal process, usually involving a neutral third party and a court. We’ll walk through the basics of the three methods, but to learn exactly what’s right for your unique situation, we recommend consulting a qualified attorney.
“Internal” Restructuring
When an organization is trying to establish a larger foundation for future growth, or significantly change the way it operates its governance or its programs, then restructuring is in order. This commonly involves changing the board governance (committees, meeting frequency, etc.), eliminating program lines, adding program lines, or adding subsidiary or affiliate entities. Most of these changes require amendments to the organization’s bylaws, and may also require filings with the secretary of state, attorney general, Internal Revenue Service or other regulators.
Bankruptcy: Chapter 11 Reorganization
Chapter 11 bankruptcy is sometimes appropriate when the nonprofit organization believes that it can continue operating once its outstanding liabilities have been reorganized/restructured. Chapter 7 bankruptcy should be used when the nonprofit organization needs to fully liquidate and close, which you can read about in our previous post.
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NEW PODCAST SERIES FROM CHARITABLE ADVISORS
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With 2021 providing opportunities to overcome many of the challenges currently facing nonprofits, Charitable Advisors has launched a new podcast series that will feature insights from leaders in the industry. For the second '3 Tips for 2021" podcast, Bryan Orander, president of Charitable Advisors, interviewed Zac Kester, Executive Director at Charitable Allies, to get his advice on how nonprofits can move forward more successfully in the new year.
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Tangram has appointed Sam Criss as its new president and CEO. Criss previously served as the chief operating officer and deputy chief of staff for the Office of the Indiana Attorney General. — CA Leadership
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Trinity Haven has named Kelsey Kennedy as its host homes program coordinator. Kennedy, a veteran in homelessness and housing positions, has previously worked with Horizon House and Adult & Child Health.
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The Indiana State Museum and Historic Sites has hired master gardener Lori Willis-Riggen as regional landscape manager. Willis-Riggen will be based at the T.C. Steele State Historic Site.
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Freewheelin’ Community Bikes has hired LaNisha Clark as executive director. Clark, a development professional for the past eight years, most recently worked at Martin University.
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The Lawrence Community Parks Foundation has hired Trace Yates as executive director. Yates previously served as the president & CEO of the Greater Lawrence Chamber of Commerce.
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EmployIndy has promoted Tehea Harding to chief financial and administrative officer. Harding has served as a member of the finance an administrative team since 2014.
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We need your input! If you haven’t done so already, share the contact information of the person in your organization responsible for completing Charitable Advisor’s annual salary survey, which will be launched Feb. 1. This survey is much shorter than previous years. Participating organizations will receive the comprehensive report for free. Submit info
John Deere and Co. has donated $1 million to help support National FFA in 2021. The company’s gift will benefit the organization's mission to encourage future leaders and strengthen the agriculture industry. Learn more
The Immigrant Welcome Center has launched a database that will support immigrants and refugees in the Indianapolis area by making information about food, housing and other resources available in more than 150 languages. Learn more
The Mind Trust invested $207,000 to fund the operation of 22 community learning sites, to ensure that more than 800 children in grades K-12 has instructional help through January. Read
Indiana food banks have distributed nearly 85 million pounds of food within a 6-month period. The Gleaners Food Bank of Indiana has worked with Indianapolis Public Schools to deliver meals along bus routes, while the Indianapolis Urban League has included meal distribution as part of its civil rights advocacy work. Read
Easterseals Arc of Northeast Indiana and Passages have announced plans to combine. The Northeast Indiana nonprofits both have a history of serving individuals and families of Whitley County impacted by intellectual and developmental disabilities. Read
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The evolution of grassroots nonprofits: How resilience and passion can lead to sustainability virtual session on Jan. 14 from 10-11:15 a.m. Participants will gain insights on how to become a grassroots organization and master the tools needed to grow. Presenters include Brandon Randall, Day Reporting Program Director for VOICES Corp; James Wilson, Founder/CEO of Circle Up Indy; and Bryan Orander, President of Charitable Advisors. Register by Jan. 13 to receive pre-reading materials. Cost: $15. Register
What’s new (and not new) with unrelated business income webinar on Jan. 14 at 11 a.m. Recognize activities that generate unrelated business income and how to report. Cost: Free. Presented by BKD. Register
Shedding light on your single audit: 2020 compliance supplement & updates webinar on Jan. 14 at 3 p.m. Analyze compliance requirements subject to audit for Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funding and evaluate other updates from the 2020 Compliance Supplement Addendum. Cost: Free. Presented by BKD. Register
Learnings & resources from 2020 America Evaluation Association conference on Jan. 15 from 1-3 p.m. Gain insights about best practices for facilitating virtual meetings and focus groups, small group discussion and more. Cost: Free for IEA members; $20 for nonmembers. Register
Optimize your donor portfolios for the New Year webinar on Jan. 21 at noon. Start 2021 with a clear focus on your best prospects, including those who are the most engaged and ready to invest in your nonprofit. Optimize your prospect portfolios with Acuity®, a prospect identification tool that allows your team to focus on your best prospects. Presented by JGA & Associates. Cost: Free. Register
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Nonprofit capacity building & assessing the health of your grantees on Jan. 28 from 1-2:30 p.m. Deputy Attorney General Tamara Weaver will discuss how to assess the health of grantees. Bryan Orander of Charitable Advisors will discuss support approaches, capacity building initiatives and how to assess readiness. Cost: $50 for Indiana Philanthropy Alliance members; $100 non-members. Register
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Child Advocates is in need of volunteers to ensure children are placed in safe, permanent homes as soon as possible. Volunteers visit with children, contact caseworkers, interview parents, look out for medical and educational needs and provide information to help courts make informed decisions as to what is in the child’s best interest. Start the process to become a volunteer advocate.
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The American Red Cross is urging Americans to donate blood in support of National Blood Donor Month and to potentially source plasma that may help people who test positive for the coronavirus.
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The nonprofit sector continues to grapple with heightened economic and political uncertainty, new fundraising realities, cascading needs, and mounting concerns for staff and volunteers’ health.
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Our sponsor marketplace serves to further connect our readers with our advertisers who are focused on serving nonprofits. To learn about each sponsor's nonprofit services, click on its logo.
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FUND DEVELOPMENT
STRATEGIC PLANNING
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BANKING/
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MEETING ROOM OR EVENT SPACE
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Office/art space available in Fountain Square
Office rental space available on Indianapolis’ Southeast side. Up to 1,970 sq ft. office space, five rooms for office/studio space, kitchenette, paid utilities, installed security system, parking and more. Contact Bradley Keen at (317) 634-5079, ext. 101.
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Nexus is a community dedicated to social impact!
With 2,000 square feet of coworking space, budget-friendly private offices, and comfortable meeting and event spaces, the Nexus Impact Center is an ideal location to pursue your mission. Located just off Interstate 465 and Michigan Road, Nexus allows your team members and visitors to quickly reach your space and meet in spacious rooms that allow for safe social distancing. More
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FEATURED JOB POSTINGS
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